Sunday, April 24, 2011

RSYXXXIII: Two for Technology and Two Almosts for Material

This seems about time to seriously try adding more to our RSY portfolio. The economy seems to be gaining strength and international events have not scared the bulls enough to have them hiding in the barn. For the selection of stocks today, I used a modified RSY in MyStockFinder and selected only Strong Buys and selected only sectors that the RSY was not already heavily invested in. This was to diversify the portfolio more.

One of the best looking one for overall good Sabrient scores is STMicroelectronics N.V. (STM). Although STM is an ADR, it has more information available than many ADRs including enough information to evaluate a forensic accounting score. Along with a decent forensic score, Sabrient notes that it has excellent scores in momentum (90.7), earnings (93.2), balance sheet (75.6), value (73.4) and the rest being average or above average (based on 1 to 100 scores). This will get RSY into the important technology sector with semiconductors. RSY recommends a buy order at the limit price of $11.99 {GTC} for 600 shares.

The second one on our list is another technology sector company in communications equipment. Sabrient analysis states that TESSCO Technologies, Inc. (TESS) is rated a Strong Buy for its outstanding profile as a value stock, combined with strong growth attributes. The value score is 85.4 which is nearly double the score of its industry. The Sabrient Fundamental Score is the broad measure of a company's financial health, including its balance sheet, cash flow, revenue, and earnings quality, and is 88.2 for TESS. Today it spiked up to over $12.50 but settled down to a decent 5 1/2%. Again we do not like chasing a rocket but let us try to enter a long position of 400 shares of TESS at a limit price of $11.51 {GTC}.

Two others that almost made it into RSY, were Olin Corporation (OLN) and Companhia Siderurgica Nacional (SID). Even though Sabrient rates all the stocks today as Strong Buy, I decided not on OLN since its score on earnings, balance sheet and fundamentals were low and below the industry average. RSY wants at least one of these scores to be outstanding before deciding on the long-term investment. And SID since the dividends are not consistent over time and the dividend payout is based on the declared dividend for May 3rd. Since we would just want to be long for a short period then the deciding factor was that the timeliness score was too low. Sabrient's timeliness score measures a "stock's short and long-term price strength as determined by various chart-based indicators and measures of group momentum and relative price performance." A courageous investor could jump in now and purchase an Undervalued Brazilian Basic Materials Dividend Stock With High Option Yields.




DPL, ARLP, LGCY.

3 Undervalued Brazilian Basic Materials Dividend Stocks With High Option Yields - Seeking Alpha

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